Indium oxide thin films were deposited by atomic layer epitaxy technique at 400 and 500-degrees-C using InCl3 and water as reactants. The films were characterized by means of x-ray diffraction, Rutherford backscattering spectrometry, nuclear reaction analysis, scanning electron microscopy, and by optical and electrical measurements. The highest deposition rate obtained was only 0.27 angstrom/cycle. The films were polycrystalline In2O3 having the [100] direction as the most pronounced orientation. The resistivities of the highly transparent films were in the order of 3 x 10(-3) OMEGA-cm.